ABS

  • Lenders old and new scramble for 'digital first' in era of Covid-19

    Lenders old and new scramble for 'digital first' in era of Covid-19

    The capital markets have been working to transition operations to a digital format for years, but bank incumbents have been reluctant to make a wholesale shift, largely because there was no urgent need to do so. Coronavirus has changed that, and banks are accelerating plans to update legacy systems, muscling in on territory once held firmly by fintechs.

  • Credit funds said to see opportunity in UK SME loan scheme

    Credit funds said to see opportunity in UK SME loan scheme

    Credit hedge funds are looking to finance books of SME loans originated under the UK government’s Coronavirus Business Interruption Loan Scheme (CBILS), subscribing for the equity in private securitization vehicles backed by the loans. The government guarantees are likely to improve the financing terms on offer, boosting returns for funds that can access these assets — but there are still questions over the details of the scheme.

  • BWIC volume highest since 2016 YTD

    BWIC volume highest since 2016 YTD

    European securitization bids wanted in competition (BWIC) volume has already reached €4.6bn in 2020, the highest level since JP Morgan's research team began collecting BWIC data in 2016. The secondary market is rallying following an improved equity market and a reopened European primary.

  • CNH prices equipment ABS, sees toughest period ahead

    CNH prices equipment ABS, sees toughest period ahead

    CNH Capital priced its first securitization of the year on Tuesday, one of the few equipment ABS sponsors to come to market during the Covid-19 outbreak. The company is forecasting the “most severe impact” in the second quarter, with some regions and product lines seeing a 40% decline in demand, CNH said.

  • EIB turns to securitization for green finance, SME relief

    EIB turns to securitization for green finance, SME relief

    The European Investment Bank (EIB) has invested in a Portuguese RMBS collateralised by green assets as part of a wider ESG programme. The group has also revealed details of its significant risk transfer (SRT) programme designed to support SME loans during the lockdowns.

  • BoE explores further measures to expand Covid support

    BoE explores further measures to expand Covid support

    The Bank of England is mulling ways to support businesses left out of Covid-19 support schemes, with a focus on sub-investment grade corporates and encouraging lending into the real economy. A securitization structure is being comtemplated via the setting up of an intermediary bank.

  • TALF benefits for ABS have mostly run out, investors say

    TALF benefits for ABS have mostly run out, investors say

    The Federal Reserve’s Term Asset Backed Securities Loan Facility succeeded in boosting investor confidence and providing a backstop to further spread widening, but sources say that key limitations in the scope of the programme, even with the most recent expansion last week, mean that the benefits have mostly already been felt.

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